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NZ Economy Under Observation / News of the Money-World #46

NZ Everyday Investor

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Is This the First Real Sign of the End of the Cheap Labor Era?

Growth over the last forty, 50 years has really been driven by massively reduced labor costs. Can we ever get back to a two % inflation rate? I don't think that's necessarily a permanent structural shift yet. Perhaps some onsuring of production around the world will probably raise prices,. But a lot of this will, i would expect, to to dissipate.

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